Overnight trading has the board at a 2 cent loss from Dec through Sep ’23 so far into the report day. Overnight action saw a tight 4 cent range around UNCH. Corn futures faded more on Tuesday to complete the day 4 1/4 to 8 1/4 cents in the red. Open interest had been rising, hinting at net new selling ahead of the report. Preliminary OI data showed a net 7,512 contract drop across corn futures – with 45k fewer Dec contracts offset partially by new selling in the other delivery months. As for options, yesterday’s losses into the report day was paired with a net 23k new open options across the complex. Dec saw 2.5k fewer open calls and 3.9k new puts, but Jan ’23 (settled against March) and July ’23 saw the most action with nearly 5k new puts in each. Jan’s corn options now hold 1.5 puts for each call, but July’s ratio is still closer to 2.2 calls for each put.
USDA reported a 338,600 MT corn sale to Mexico yesterday during the daily reporting system.
Ahead of the monthly WASDE report, analysts surveyed are looking for a 0.5 MMT cut to the world ending stocks number, taking it to 300.7 MMT.
France’s Ag Ministry reduced their corn crop projection by 400k MT to 11 MMT citing the summers lasting drought impacts being realized off the combines.
Dec 22 Corn closed at $6.67 1/2, down 8 1/4 cents, currently down 2 cents
Nearby Cash was $6.65 3/8 on Tuesday, down 7 5/8 cents,
Mar 23 Corn closed at $6.73 3/4, down 7 3/4 cents, currently down 2 cents
May 23 Corn closed at $6.73 3/4, down 8 1/4 cents, currently down 2 cents
On the date of publication, Alan Brugler did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.
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